It has been two years since the time the Credit Card Accountability, Responsibility and Disclosure Act came into effect. Despite this, there are a lot of facts about this act that are still hidden. Here are a few important ones that every person needs to be aware of.

First of all, the CARD Act does not levy a cap on the interest rates that banks can charge on the credit cards. The Act can only prevent the banks from increasing the rates arbitrarily, like in the past. Linda Sherry, a financial analyst with a leading company, says that most people wrongly assume that the CARD Act curbs the interest rates on the card. This is, however, not true. She says that the best cards with the best terms are advertised and issued only to people with good credit history. Those with a poor credit score are left to the mercy of the banks that can take advantage of their plight by charging sky high interest rates.

Unlike what many people think, the CARD Act does not prevent credit card companies from marketing their cards to college students. It has only levied certain restrictions that have curbed the aggressive marketing tactics that credit card lenders resorted to in the past. Today, students below the age of 21 have to either produce proof of sufficient income to cover the costs of the credit card or get a parent to co-sign on the application form. Also, the Act stipulates that lenders cannot entice students with freebies to sign-up for their cards.